Home / Metal News / China June Copper Imports Likely High Amid Strong SHFE Volumes -Barclays

China June Copper Imports Likely High Amid Strong SHFE Volumes -Barclays

iconJun 20, 2012 09:58
Source:SMM
China's copper imports will likely stay at elevated levels in June, judging by the high daily volume of copper contracts traded on the Shanghai Futures Exchange.

Jun 19, 2012 (Dow Jones) BEIJING -- China's copper imports will likely stay at elevated levels in June, judging by the high daily volume of copper contracts traded on the Shanghai Futures Exchange, Barclays Commodities Research said in a note Tuesday.

"SHFE traded volumes have typically had a positive correlation with copper import volumes, with the month-on-month changes in import levels lagging SHFE traded volumes by between one to two months," Barclays analyst Nicholas Snowdon said.

Imports of copper and copper products in May rose 65% from a year earlier and 12% from April, bucking analyst expectations of a sequential decline.

However, Barclays noted that the trend tracked SHFE copper traded volumes, which rose from 453,000 contracts traded in March to 540,000 in April.

Traded volume rose 13% in May compared with April, and is so far up about 5% this month, Snowdon said in the note.

"This indicator at least weighs against the anticipation of sequential declines in import volumes mid-year."

Higher domestic physical prices and more attractive price differentials with London counterparts may have encouraged imports this month, underpinning spot copper prices, Barclays said.


 

China copper imports in June
Barclays Commodities Research

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

SMM Events & Webinars

All